diff --git a/package-lock.json b/package-lock.json
index aeacb87fa..182374a4d 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -116,7 +116,7 @@
         "@percy/cli": "^1.21.0",
         "@percy/cypress": "^3.1.2",
         "@release-it/bumper": "^2.0.0",
-        "@saleor/app-sdk": "0.37.3",
+        "@saleor/app-sdk": "0.39.1",
         "@types/apollo-upload-client": "^17.0.2",
         "@types/color-convert": "^2.0.0",
         "@types/debug": "^4.1.7",
@@ -7913,9 +7913,9 @@
       }
     },
     "node_modules/@saleor/app-sdk": {
-      "version": "0.37.3",
-      "resolved": "https://registry.npmjs.org/@saleor/app-sdk/-/app-sdk-0.37.3.tgz",
-      "integrity": "sha512-DFAjiEFBFIDWDqZvaXar8860zDgSZih2n7gT3e+aOpLIfnmMZ0nL6+aNS3A7ym2IStx8oUoPI1RFZBIeuF9+hg==",
+      "version": "0.39.1",
+      "resolved": "https://registry.npmjs.org/@saleor/app-sdk/-/app-sdk-0.39.1.tgz",
+      "integrity": "sha512-PBREZWwkk+DHCBhOZzsuFdp7/vLItxfAqKD+gcZ5QxzSAt82S0/FS6ii7igpW3H+bEiK4oBUjMxgUyhJMOXQHw==",
       "dev": true,
       "dependencies": {
         "@changesets/cli": "^2.26.0",
@@ -41291,9 +41291,9 @@
       }
     },
     "@saleor/app-sdk": {
-      "version": "0.37.3",
-      "resolved": "https://registry.npmjs.org/@saleor/app-sdk/-/app-sdk-0.37.3.tgz",
-      "integrity": "sha512-DFAjiEFBFIDWDqZvaXar8860zDgSZih2n7gT3e+aOpLIfnmMZ0nL6+aNS3A7ym2IStx8oUoPI1RFZBIeuF9+hg==",
+      "version": "0.39.1",
+      "resolved": "https://registry.npmjs.org/@saleor/app-sdk/-/app-sdk-0.39.1.tgz",
+      "integrity": "sha512-PBREZWwkk+DHCBhOZzsuFdp7/vLItxfAqKD+gcZ5QxzSAt82S0/FS6ii7igpW3H+bEiK4oBUjMxgUyhJMOXQHw==",
       "dev": true,
       "requires": {
         "@changesets/cli": "^2.26.0",
diff --git a/package.json b/package.json
index 724141a3f..fc5a833d7 100644
--- a/package.json
+++ b/package.json
@@ -123,7 +123,7 @@
     "@percy/cli": "^1.21.0",
     "@percy/cypress": "^3.1.2",
     "@release-it/bumper": "^2.0.0",
-    "@saleor/app-sdk": "0.37.3",
+    "@saleor/app-sdk": "0.39.1",
     "@types/apollo-upload-client": "^17.0.2",
     "@types/color-convert": "^2.0.0",
     "@types/debug": "^4.1.7",
diff --git a/src/apps/components/AppFrame/AppFrame.tsx b/src/apps/components/AppFrame/AppFrame.tsx
index 570c8da31..1c24d3253 100644
--- a/src/apps/components/AppFrame/AppFrame.tsx
+++ b/src/apps/components/AppFrame/AppFrame.tsx
@@ -1,4 +1,5 @@
 import { useAppDashboardUpdates } from "@dashboard/apps/components/AppFrame/useAppDashboardUpdates";
+import { useUpdateAppToken } from "@dashboard/apps/components/AppFrame/useUpdateAppToken";
 import {
   AppDetailsUrlQueryParams,
   prepareFeatureFlagsList,
@@ -76,6 +77,15 @@ export const AppFrame: React.FC<Props> = ({
 
   const featureFlags = useMemo(() => prepareFeatureFlagsList(flags), [flags]);
 
+  useUpdateAppToken({
+    postToExtension,
+    appToken,
+    /**
+     * If app is not ready, ignore this flow
+     */
+    enabled: handshakeDone,
+  });
+
   return (
     <>
       {!handshakeDone && (
diff --git a/src/apps/components/AppFrame/useUpdateAppToken.test.ts b/src/apps/components/AppFrame/useUpdateAppToken.test.ts
new file mode 100644
index 000000000..30948fb1c
--- /dev/null
+++ b/src/apps/components/AppFrame/useUpdateAppToken.test.ts
@@ -0,0 +1,80 @@
+import { useUpdateAppToken } from "@dashboard/apps/components/AppFrame/useUpdateAppToken";
+import { renderHook } from "@testing-library/react-hooks";
+
+describe("useUpdateAppToken", function () {
+  const postMessage = jest.fn();
+
+  beforeEach(() => {
+    jest.resetAllMocks();
+  });
+
+  it("Doesnt do anything if disabled", () => {
+    const { waitFor } = renderHook(props => useUpdateAppToken(props), {
+      initialProps: {
+        enabled: true,
+        appToken: "initialToken",
+        postToExtension: postMessage,
+      },
+    });
+
+    return waitFor(() => {
+      expect(postMessage).not.toHaveBeenCalled();
+    });
+  });
+
+  it("Doesnt do anything if re-rendered, but token stays the same between renders", () => {
+    const localPostMessage = jest.fn();
+
+    const { rerender, waitFor } = renderHook(
+      props => useUpdateAppToken(props),
+      {
+        initialProps: {
+          enabled: true,
+          appToken: "initialToken",
+          postToExtension: postMessage,
+        },
+      },
+    );
+
+    rerender({
+      enabled: true,
+      appToken: "initialToken",
+      // simulate props change due to reference change
+      postToExtension: localPostMessage,
+    });
+
+    return waitFor(() => {
+      expect(postMessage).not.toHaveBeenCalled();
+      expect(localPostMessage).not.toHaveBeenCalled();
+    });
+  });
+
+  it("Calls postMessage if token changes in props and enabled", async () => {
+    const { rerender, waitFor } = renderHook(
+      props => useUpdateAppToken(props),
+      {
+        initialProps: {
+          enabled: true,
+          appToken: "initialToken",
+          postToExtension: postMessage,
+        },
+      },
+    );
+
+    rerender({
+      enabled: true,
+      appToken: "updatedToken",
+      // simulate props change due to reference change
+      postToExtension: postMessage,
+    });
+
+    return waitFor(() => {
+      expect(postMessage).toHaveBeenCalledWith({
+        type: "tokenRefresh",
+        payload: {
+          token: "updatedToken",
+        },
+      });
+    });
+  });
+});
diff --git a/src/apps/components/AppFrame/useUpdateAppToken.ts b/src/apps/components/AppFrame/useUpdateAppToken.ts
new file mode 100644
index 000000000..910d7e616
--- /dev/null
+++ b/src/apps/components/AppFrame/useUpdateAppToken.ts
@@ -0,0 +1,56 @@
+import { createAppsDebug } from "@dashboard/apps/apps-debug";
+import { DashboardEventFactory, Events } from "@saleor/app-sdk/app-bridge";
+import { useEffect, useRef } from "react";
+
+/**
+ * https://usehooks.com/usePrevious/
+ */
+function usePreviousValue(value) {
+  const ref = useRef();
+
+  useEffect(() => {
+    ref.current = value;
+  }, [value]);
+
+  return ref.current;
+}
+
+interface Args {
+  enabled: boolean;
+  appToken: string;
+  postToExtension: (events: Events) => void;
+}
+
+const debug = createAppsDebug("useUpdateAppToken");
+
+/**
+ * Listens on appToken changes and pushes it to the App if changed.
+ */
+export const useUpdateAppToken = ({
+  enabled,
+  appToken,
+  postToExtension,
+}: Args) => {
+  const cachedToken = usePreviousValue(appToken);
+
+  useEffect(() => {
+    if (!enabled) {
+      return;
+    }
+
+    if (!cachedToken) {
+      /**
+       * Missing cache token means its first render, so we dont want to send it to app
+       */
+      return;
+    }
+
+    if (cachedToken !== appToken) {
+      debug("Will send new token to the app");
+      /**
+       * Ensure running only when token changes. If token changes, send it to app
+       */
+      postToExtension(DashboardEventFactory.createTokenRefreshEvent(appToken));
+    }
+  }, [enabled, appToken, cachedToken, postToExtension]);
+};
diff --git a/testUtils/setup.ts b/testUtils/setup.ts
index 6a61385a2..0ae5254b4 100644
--- a/testUtils/setup.ts
+++ b/testUtils/setup.ts
@@ -31,3 +31,12 @@ window.__SALEOR_CONFIG__ = {
 process.env.TZ = "UTC";
 
 configure({ testIdAttribute: "data-test-id" });
+
+/**
+ * https://github.com/inrupt/solid-client-authn-js/issues/1676
+ *
+ * Fixes (hacks) "TextEncoder is not defined" error which is likely bug in jsdom
+ */
+import { TextDecoder, TextEncoder } from "util";
+global.TextEncoder = TextEncoder;
+global.TextDecoder = TextDecoder;